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Tuesday, September 2, 2014

During Modi's Japan visit, SBI and Japanese bank ink deal for power plant

SBI chairperson A Bhattacharya

DURING the historic Japan visit by
Prime Minister Narendra Modiu, showing a sign of growing financial
collaboration between India and Japan, State Bank of India (SBI) and
Japan Bank for International Cooperation (JBIC) on...

September 1 signed
a loan agreement to set up an export credit line for a power plant in
Uttar Pradesh.

The loan to be co-financed by the Bank
of Tokyo-Mitsubishi UFJ Ltd. (BTMU) will bring the total co-financing
amount to JPY 13.5 billion ($21 million), the statement issued by SBI
said.

This loan will be utilised by Meja Urja
Nigam Private Ltd. (MUNPL) to finance procurement of steam turbine
generator equipments from a Japan company and its subsidiary in India
to construct a super critical pressure coal-fired 1320 MW (660MW X 2
units) power plant in Meja, Uttar Pradesh.

The pact was inked by SBI
chairperson Arundhati Bhattacharya and JBIC Governor Hiroshi Watanabe
in Tokyo.

"India has a strong appetite for
infrastructural development and I see a greater role for JBIC in
supporting the Indian commercial banks and infrastructure companies,"
Bhattacharya said on the occasion.

She assured the JBIC of all support and
urged it to look at India as a "land of unique opportunities".

"Today's agreement with JBIC is a
landmark agreement in this direction and such large-scale funding
will benefit all the parties involved," she added.

This is the third such occasion that India's largest lender has taken part with JBIC in a project funding.